2012 2013

BUSINESS RESPONSIBILITY
REPORT 2012-13
MAKING
SUSTAINABLE LIVING
COMMONPLACE
CorporateRegister.com Limited 30-04-14
CONTENTS
02
04
07
08
10
14
16
17
18
20
The Unilever
Sustainable
Living Plan
Principle 6:
Environment
Introduction
to Business
Responsibility
Report
Principle 7:
Policy
Advocacy
Principle 1: Ethics,
Transparency and
Accountability
Principle 8:
Inclusive
Growth
Principle 2:
Products Lifecycle
Sustainability
Principle 9:
Customer
Value
Principle 3:
Employees
Well-being
The road
ahead
12
Principle 4:
Stakeholder
Engagement
13
Principle 5:
Human
Rights
MAKING SUSTAINABLE
LIVING COMMONPLACE
Sustainability is at the core of your Companys way of
doing business. It guides your Company on the path
to long term success in a world where aspirations
are rising but resources are shrinking. Unilever
globally has set out the Unilever Sustainable Living
Plan (USLP), which embeds sustainability in the
business model. The Plan sets out to decouple
growth from the environmental impact and at the
same time increase positive social impact.
Strong values inspired the Companys visionary founders to make innovative

products that addressed the big social issues of their time: they made
cleanliness commonplace by launching affordable bar soaps, they looked for
opportunities to build a responsible business through meeting the everyday
needs of people. The same values have guided your Company for many
decades and they are more relevant now to deliver responsible growth and
make sustainable living commonplace.
OUR VISION
OUR BUSINESS STRATEGY
Double the size of the business, whilst

reducing our environmental footprint and
increasing our positive social impact.
We live in a world where volatility and

uncertainty have become the new
normal, with ongoing economic, social
and environmental pressures making a
deep impact on people and businesses.
Your Companys approach to business
strategy and the business model is framed
in this context. We call our business
strategy the Compass, since it sets out a
path for the long term.
We will lead for responsible growth,

inspiring people to take small everyday
actions that will add up to a big difference.
We will grow by winning shares and
building markets everywhere.
The Compass lays out the path that will

help us achieve our purpose and our vision
POSITIVE SOCIAL
IMPACT
through four distinct pillars. It describes

our ways for winning (i) with brands and
innovation; (ii) in the marketplace;
(iii) through continuous improvement; and
(iv) with people. Our performance against
these pillars is explained in our Annual
Report 2012-13.
The Compass gives life to our determination
to build a sustainable business for the
long term and to find new ways to operate
that do not just take from society and
the environment. This is captured in the
Unilever Sustainable Living Plan (USLP).
DOUBLE THE
BUSINESS
REDUCE
ENVIRONMENTAL
FOOTPRINT
OUR PURPOSE
TO MAKE SUSTAINABLE
LIVING COMMONPLACE.
We work to create a better future every day, with
brands and services that help people feel good, look
good and get more out of life.
Our first priority is to our consumers then
customers, employees, suppliers and communities.
When we fulfil our responsibilities to them, we believe
that our shareholders will be rewarded.
Business Responsiblity Report 2012-13
Making Sustainable Living Commonplace
THE UNILEVER
SUSTAINABLE LIVING PLAN
H
elp more than 1 billion people improve
their health and well-being.
The Unilever Sustainable Living Plan

(USLP) is your Companys blueprint for
achieving the vision of doubling the size of
the business whilst reducing
environmental footprint and increasing
positive social impact. The Plan has three
big goals to achieve by 2020:
H
alve the environmental footprint of our
products.
S
ource 100% of our agricultural raw
materials sustainably and enhance the
livelihoods of people across our value
chain.
IMPROVING HEALTH
AND WELL-BEING
REDUCING
ENVIRONMENTAL IMPACT
By 2020, Unilever will help more than a

billion people take action to improve their
health and well-being.
1 HEALTH AND
HYGIENE
By 2020 Unilever will help

more than a billion people to
improve their hygiene habits
and will bring safe drinking
water to 500 million people.
This will help reduce the
incidence of life-threatening
diseases like diarrhoea.
ABOUT 47 MILLION
PEOPLE IN INDIA
REACHED THROUGH
LIFEBUOY BETWEEN
2010 AND 2012. 45
MILLION PEOPLE
REACHED THROUGH
PUREIT BY END OF 2012,
GLOBALLY.
2N
UTRITION
Unilever will continually

work to improve the taste
and nutritional quality of all
products. By 2020 the
Company will double the
proportion of portfolio that
meets the highest nutritional
standards, based on globally
recognised dietary
guidelines.
IN INDIA, BY THE END OF
2012, 66% OF FOODS
PORTFOLIO (BY VOLUME)
COMPLIANT WITH THE 5 G
PER DAY SALT TARGET.
The Unilever Sustainable Living Plan
By 2020, Unilevers goal is to halve the

environmental footprint of the making
and use of products as the Company
grows its business.
3G
REENHOUSE
GASES
Unilevers commitment is to
halve the greenhouse gas
impact of products across
the lifecycle by 2020^+.
IN INDIA, SIGNIFICANT
PROGRESS MADE IN
REDUCING GREENHOUSE
GASES FROM OUR
MANUFACTURING
OPERATIONS. CO2
EMISSIONS PER TONNE
OF PRODUCTION IN
INDIA REDUCED BY 22%
COMPARED TO 2008*.
4W
ATER
halve the water associated
with the consumer use of
products by 2020^+.
IN INDIA, MAGIC WATER
SAVER AND COMFORT
ONE RINSE LAUNCHED
AS PILOT PROJECTS TO
SIGNIFICANTLY
REDUCE WATER
CONSUMPTION IN
LAUNDRY.
Hindustan Unilever Limited
ENHANCING
LIVELIHOODS
By 2020, Unilever will enhance the
livelihoods of hundreds of thousands of
people while growing its business.
5W
ASTE
halve the waste associated
with the disposal of
products by 2020^.
SIGNIFICANT PROGRESS
MADE IN REDUCING
WASTE FROM
MANUFACTURING
OPERATIONS IN INDIA.
WASTE PRODUCED PER
TONNE OF PRODUCTION
REDUCED BY 77%
COMPARED TO 2008*.
6S
USTAINABLE
SOURCING
By 2020 Unilever will

source 100% of agricultural
raw materials sustainably.
IN INDIA, 70% OF
AGRICULTURAL RAW
MATERIALS SOURCED
SUSTAINABLY BY 2012.
EXCEEDED INTERIM
MILESTONE OF 50%.
7B
ETTER
LIVELIHOODS
By 2020 Unilever will

engage with at least
500,000 smallholder
farmers and 75,000
small-scale distributors in
the supply network.
48,000 SHAKTI
ENTREPRENEURS
(SMALL-SCALE
DISTRIBUTORS) IN 15
STATES ACROSS INDIA
BY END OF 2012.
* per tonne of production in 2012 over 2008 baseline.

^ Our environmental targets are expressed on a per consumer use basis, using a lifecycle approach. This
means a single use, portion or serving of a product.
+ In seven water-scarce countries representing around half the worlds population.
The Unilever Sustainable

Performance
Living
Trends
Plan
ABOUT THE REPORT

The Securities and Exchange Board
of India (SEBI) has mandated the top
100 listed entities (based on market
capitalisation on the Bombay Stock
Exchange and the National Stock
Exchange as on 31st March, 2012) to
publish a Business Responsibility Report
(BRR) that discloses steps taken by the
companies on the Environmental, Social

and Governance aspects of the business.
The said reporting requirement is in line
with the National Voluntary Guidelines
on Social, Environmental and Economic
Responsibilities of Business (NVGs)
notified by the Ministry of Corporate
Affairs, Government of India, in July 2011.
This Report provides general information

about the Company and it business
responsibility as required by SEBI. The
report further provides an overview of
activities carried out by the Company
under each of the nine principles as
outlined in the NVG.
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1
2
3
4
5
6
7
Corporate Identity Number (CIN) of the Company

Name of the Company
Registered address
Website
E-mail id
Financial year reported
Sector(s) that the Company is engaged in (industrial
activity code-wise)
List three key products that the Company

manufactures/provides (as in balance sheet)
Total number of locations where business activity is

undertaken by the Company
i) Number of International Locations
(Provide details of major 5)
ii) Number of National Locations
10
Markets served by the Company
L15140MH1933PLC002030
B. D. Sawant Marg, Chakala, Andheri (East), Mumbai 400099
www.hul.co.in
levercare.shareholder@unilever.com
1st April 2012 to 31st March 2013
305
Soaps & Detergents and Personal Products
213 Tea
214 Coffee
218
Packaged Foods (Including Frozen Desserts)
359.9
Water Purifiers
Soaps & Detergents
Personal Products [including Skin care, Hair care, Oral care,
Deodorants and Colour Cosmetics]
Food & Beverages [including Tea, Coffee, Processed Foods, Frozen
Desserts and Bakery Products]
None
Registered Office:
Unilever House, B D Sawant Marg, Chakala,
Andheri East, Mumbai 400 099
Research Centre:
64, Main Road, Whitefield P O, Bangalore 560 066
Regional Office (East):
Brooke House, 9 Shakespere Sarani, Kolkata 700 071
Regional Office (West):
Uttara, Plot No. 2, Sector No. 11,
CBD Belapur, Navi Mumbai 400 614
Regional Office (North):
Block No. A, Plot No. B, South City I,
Delhi - Jaipur Highway, Gurgaon 122 001
Regional Office (South):
101, Santhome High Road, Chennai 600 028
(For details of Plant Locations, please refer page no. 152 of Annual
Report 2012-13.)
India
SECTION B: FINANCIAL DETAILS OF THE COMPANY
Paid up Capital (INR)
Total Turnover (INR)
Total profit after taxes (INR)
Total Spending on Corporate Social Responsibility

(CSR) as percentage of profit after tax (%)
List of activities in which expenditure in 4 above has

been incurred
Introduction to Business Responsibility Report
Rs. 216,24,72,310
(Paid up Equity Share Capital (face value Re. 1 per share))
Rs. 25,20,638 lakhs
(Net Sales from Operations (Net of excise duty))
Rs. 3,79,667 lakhs
(Net Profit from ordinary activities after tax)
1.82% of Average net profit* of three immediately preceding financial years
*Computed as per the provisions of Clause 198 of the Companies Bill, 2012.
Health & Well-being
Enhancing Livelihoods
Water Conservation
SECTION C: OTHER DETAILS

1
2
Does the Company have any Subsidiary Company /

Companies?
As on 31st March, 2013, the Company has eleven Subsidiary

Companies. Hindustan Unilever Foundation, a Section 25 Company,
Do the Subsidiary Company / Companies participate incorporated to promote and implement the Corporate Social
Responsibility agenda and to work in the areas of Social, Economical
in the BR Initiatives of the parent Company? If
and Environmental concerns, contributes to the sustainability
yes, then indicate the number of such Subsidiary
initiatives of the Company. In addition, Unilever India Exports Limited
Company(s)
and Ponds Exports Limited also contribute to the sustainability
initiatives of the Company.
Do any other entity / entities (e.g. suppliers,
distributors etc.) that the Company does business
with, participate in the BR initiatives of the
Company? If yes, then indicate the percentage of
such entity / entities? [Less than 30%, 30-60%,
More than 60%]
The Code of Business Principles and Business Partner Code are

applicable to all the business partners of the Company. The business
partners of the Company are required to follow these codes in their
business endeavours.
SECTION D: BUSINESS RESPONSIBILITY (BR) INFORMATION
Details of Director / Directors responsible for BR

The Board of Directors has constituted the Corporate Social Responsibility (CSR) Committee. The Committee comprises Mr. O. P. Bhatt
as the Chairman and Mr. Aditya Narayan, Dr. R. A. Mashelkar, Dr. Sanjiv Misra, Mr. Nitin Paranjpe and Mr. Sridhar Ramamurthy as
members of the Committee. The role of the CSR Committee is as follows:
formulating and recommending to the Board a Corporate Social Responsibility Policy and the activities to be undertaken by the
Company;
recommending the amount of expenditure to be incurred on the activities undertaken;
reviewing the performance of the Company in area of Corporate Social Responsibility;
providing external and independent oversight and guidance on the environmental and social impact of how the Company conducts
its business;
monitoring the Corporate Social Responsibility Policy of the Company from time to time.
The Committee is responsible for the implementation of the CSR Policy of the Company. The details of the Committee members
are as follows:
Name
Designation
DIN
Mr. O. P. Bhatt*
Mr. Aditya Narayan
Dr. R. A. Mashelkar
Dr. Sanjiv Misra
Mr. Nitin Paranjpe
Mr. Sridhar Ramamurthy
Independent Director
Chief Executive Officer & Managing Director
Executive Director, Finance & IT and Chief Financial Officer
00548091
00012084
00074119
03075797
00045204
02557168
* Chairman
Principle-wise (as per NVGs) BR Policy / Policies (Reply in Y/N)

The Code of Business Principles are the guiding principles on the basis of which various policies of the Company are formed. The
CoBP is the Companys statement of values and represents the standard of conduct which all employees and those associated with the
Company are expected to observe.
Unilever Sustainable Living Plan is a time bound plan with specific goals and targets that commits us to deliver sustainable growth.
The USLP applies right across the value chain, wherein the Company takes responsibility not just for its own operations but also for
suppliers, distributors and the way consumers use the Companys brands.
The CoBP and the USLP also imbibe the requirements enunciated in the National Voluntary Guidelines.
The National Voluntary Guidelines provides for the following nine principles:
Principle 1: Ethics, Transparency and Accountability [P1]
Principle 6: Environment [P6]
Principle 2: Products Lifecycle Sustainability [P2]
Principle 7: Policy Advocacy [P7]
Principle 3: Employees Well-being [P3]
Principle 8: Inclusive Growth [P8]
Principle 4: Stakeholder Engagement [P4]
Principle 9: Customer Value [P9]
Principle 5: Human Rights [P5]

Sr.
No.
Questions
1
2
Do you have policy/policies for

Has the policy been formulated in consultation with the
relevant stakeholders?
Does the policy conform to any national /international
standards? If yes, specify?
Has the policy been approved by the Board.

If yes, has it been signed by MD/owner/CEO/appropriate
Board Director?
Does the company have a specified committee of the
Board/ Director/Official to oversee the implementation
of the policy?
P2
P3
P4
P5
P6
P7
P8
P9
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
The Code of Business Principles of the Company confirms to

the United Nations Global Compact (UNGC) guidelines and
International Labour Organisation (ILO) principles.
The Unilever Sustainable Living Plan Progress Report conforms to
Global Reporting Initiative (GRI) indicators.
Y
The Code of Business Principles and the USLP are frameworks

adopted by Unilever globally and have been adopted by the
Company.
Y
The CoBP is administered under the overall supervision of the

Management Committee of the Company, headed by the Chief
Executive Officer and Managing Director. The Audit Committee of
the Board of Directors of the Company reviews the implementation
of CoBP. The CSR Committee of the Board reviews the
implementation of the USLP besides the scope that has been laid
out for this Committee under the proposed Companies Bill, 2012.
USLP: www.hul.co.in/sustainable-living/uslp/
CoBP: www.hul.co.in/aboutus/purposeandprinciples/ourprinciples/
Unilever Supplier Code:
www.hul.co.in/aboutus/purposeandprinciples/business_partner_code/
Y
Y
Y
Y
Y
Y
Y
Y
Y
Indicate the link for the policy to be viewed online?
Has the policy been formally communicated to all

relevant internal and external stakeholders?
Does the company have in-house structure to

implement the policy/policies
Does the Company have a grievance redressal

mechanism related to the policy/policies to address
stakeholders grievances related to the policy/policies?
Has the company carried out independent audit/
evaluation of the working of this policy by an internal or
external agency?
10
Governance related to BR
The Management Committee of the
Company on a monthly basis reviews
complaints, issues and concerns received
under the CoBP framework as also the
implementation of the CoBP. The Audit
Committee of the Company on a quarterly
basis reviews the implementation of the
CoBP.
6
P1
The Corporate Social Responsibility

(CSR) Committee of the Company
comprising a majority of Independent
Directors is responsible for formulating
and implementing the CSR Policy of
the Company. The Committee meets at
least twice a year to review progress on
various sustainability initiatives, including
progress under the USLP.
The Company publishes a Unilever

Sustainable Living Plan India Progress
Report every year. The USLP India
Progress Report 2012 can be accessed
at http://www.hul.co.in/Images/
USLP%E2%80%93India-2012-ProgressReport_tcm114-241468.pdf
PRINCIPLE 1: ETHICS, TRANSPARENCY AND ACCOUNTABILITY

BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH ETHICS, TRANSPARENCY
AND ACCOUNTABILITY
I BELIEVE THAT NOTHING CAN

BE GREATER THAN A
BUSINESS, HOWEVER SMALL
IT MAY BE, THAT IS GOVERNED
BY CONSCIENCE; AND THAT
NOTHING CAN BE MEANER OR
MORE PETTY THAN A
BUSINESS, HOWEVER LARGE,
GOVERNED WITHOUT HONESTY
AND WITHOUT BROTHERHOOD.
William Hesketh Lever
Transparency and accountability are
the basic tenets of good Corporate
Governance. At HUL, we are proud
inheritors of a legacy of good governance
that dates back to our visionary founders
as reflected in the words of William
Hesketh Lever. Subsequent leaders have
built on this tradition over the years, giving
us the high reputation we enjoy today.
Responsible corporate conduct is integral
to the way we do business. Your Companys
actions are governed by its values and
principles, which are reinforced at all
levels within the Company. Your Company
is committed to doing things the right way,
which means acting in a way that is ethical
and in compliance with the applicable
legislation. The Code of Business
Principles (CoBP/ Code) is an extension
of the Companys values and reflects its
commitment to ethical business practices
and regulatory compliances. The Code
inspires us to set standards which not
only meet the requirements of applicable
legislation but also exceed them in many
areas of our business operations.
invited to judge the Companys activities.

The Code reflects the Companys
commitment to principles of integrity,
transparency and fairness. The Code
along with its associated Code Policies
provides for mandatory requirements
covering, but not limited to, the following
areas: accurate records, reporting and
accounting; anti-bribery; anti-competition;
avoiding conflicts of interest; gifts and
entertainment; preventing insider trading;
political activities and political donations;
contact with government, regulators
and non-governmental organisations;
respect, dignity and fair treatment; and
external communications (the media,
investors and analysts). The copy of the
Code of Business Principles is available
on the website of the Companywww.hul.
co.in/aboutus/purposeandprinciples/
ourprinciples/
The Code is applicable to everyone
with whom the Company is associated.
The Code of Business Principles and
associated Code Policies govern the
behaviour of employees, suppliers,
distributors and other third parties who
work with us.
The Chief Executive Officer (CEO)
through the Management Committee and
Business / Unit Heads is responsible for
ensuring that the Code is understood and
implemented throughout the Company.
The Company periodically cascades the
principles embodied under CoBP across
the organisation. Complaints, issues
and concerns received under the CoBP
framework are duly investigated and
reviewed by the CoBP Committee(s).
Appropriate actions are taken after
completion of investigation.
The processes of identifying and resolving

complaints, issues and concerns received
under the CoBP framework are clearly
defined and regularly communicated
throughout the Company. During the
financial year 2012-13, a total of 82
complaints and issues from employees
and business partners were reported
under the CoBP framework and the same
were duly investigated and dealt with in
accordance with the CoBP protocols of the
Company.
The Company has alsoadopted a Whistle
Blower Policy to provide appropriate
avenues to the employees to bring to
the attention of the management any
issue which is perceived to be in violation
of or in conflict with the fundamental
business principles of the Company.
The Company has provided dedicated
e-mail addresseswhistleblowing.hul@
unilever.com and cobp.hul@unilever.
comfor reporting such complaints.
Alternatively, employees can also send
written communication to the Company.
Employees are encouraged to raise any
concerns by way of whistle blowing.
The Company Secretary is the designated
officer for effective implementation of the
policy and dealing with the complaints
registered under the policy. All cases
registered under the Code of Business
Principles and the Whistle Blower Policy
of the Company are reported to the
Committee of Executive Directors and are
subject to review by the Audit Committee.
Code of Business Principles

The Code of Business Principles is the
Companys statement of values and
represents the standard of conduct which
all employees and partners are expected
to observe. It forms the benchmark
against which the world at large is
Ethics, Transparency and Accountability
PRINCIPLE 2: PRODUCTS LIFECYCLE SUSTAINABILITY

BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND CONTRIBUTE
TO SUSTAINABILITY THROUGHOUT THEIR LIFE CYCLE
OUR BRANDS ARE CENTRAL TO

OUR VISION OF CREATING A
BETTER FUTURE.
Your Companys products are designed to
serve the needs of society. The
development process incorporates
societal good, environmental impact and
economic value. Thus, sustainability and
safety is integrated into the development
plan of the products of your Company.
This approach follows in the footsteps of
the Companys rich tradition and history.
For example, Sunlight soap launched
in 1880s has been making hygiene
and cleanliness affordable around the
world. Your Companys brands play an
important role in helping reach the aims
of sustainable living. Brands are central
to the Compass strategy and the Unilever
Sustainable Living Plan.
Brands at the forefront of change

The Lifebuoy brand, which is known for
promoting health & hygiene, has taken
the handwashing behaviour change
programme to millions of people
across the world. Through the Lifebuoy
handwashing programme, your Company
seeks to take the message on the
importance of handwashing to vulnerable
sections of society. Your Company has
reached 47 million people through the
Lifebuoy handwashing programmes
between years 2010 and 2012 in India.
Pureit, the water purifier brand of your
Company, addresses one of the biggest
technological challenges of the century
that of making safe drinking water
accessible and affordable for millions
without the need of electricity or a
continuous tap water supply. More than
45 million people gained access to safe
drinking water from Pureit globally by the
end of 2012.
Your Company has launched an initiative
to source tomatoes sustainably in India.
The Company entered into a publicprivate partnership with the Maharashtra
8
Products Lifecycle Sustainability
Government for sustainable sourcing

of tomatoes locally. In 2012, over 60%
of tomatoes used in Kissan Ketchup in
India were from sustainable sources.
Your Company aims to source 100% of
tomatoes from sustainable sources by
2015. For this project, the Government of
Maharashtra registered 618 farmers who
grow tomatoes on over 1,208 acres.
Many other brands significantly contribute
in areas like enhancing nutrition, providing
livelihoods, reducing greenhouse gases
etc. You can read more on this in the
section Brands In Action on the website www.hul.co.in/brands-in-action/.
Product Lifecycle Analysis

Understanding lifecycle impacts of
the Companys products is crucial to
delivering the target of reducing overall
environmental impact across the value
chain while doubling the size of the
business. For this purpose, Unilever
globally has adopted the process of
Lifecycle Assessment (LCA) for all product
innovations. Your Company leverages and
benefits from various innovations and
technological advancements made by
Unilever globally.
Lifecycle Assessment (LCA) is one of the
techniques to understand environmental
impacts of products. This is done in three
ways:
Product innovation: When designing
new products, LCAs are used to
compare new and existing products
and to measure the differences in their
respective environmental profiles.
This information is used to help guide
product developers to support the
launch of new products and to inform
consumers of the environmental
performance of products.
Product category analysis: LCAs on
product categories or portfolios are
conducted to help raise environmental
awareness and to identify improvement
opportunities.
Strategic studies: A number of strategic
studies are carried out by Unilever using
LCAs to understand the environmental
impact. Recent publications include one

on quantifying global greenhouse gas
emissions from land use change and
another on the development of a new
method to estimate the global warming
potential of worldwide crop production.
Product safety comes first

Your Company believes in delivering
products that are of good quality and safe
for consumers. The Code of Business
Principles of the Company sets out the
commitment to provide products and
services which are safe for their intended
use and to innovate on the basis of sound
science and applying rigorous standards of
product safety.
Unilever has a Safety & Environmental
Assurance Centre (SEAC) which
assures the safety and environmental
sustainability of the products as well as
the processes used to manufacture them.
Your Company works closely on all safety
and environmental assurance issues
with SEAC. The Company has stringent
guidelines on product quality and rigorous
systems and processes in place to monitor
and control quality of raw materials
and products before finished goods are
released to the market for consumer use.
The Levercare initiative of the Company
allows consumers to register complaints
and obtain information regarding the
Companys products e.g. selection of
products among the range of offerings,
product benefit, direction for use and
safety of ingredients used in the products,
from the consumer helpline.
Sustainable Sourcing
An important part of the raw materials
used by your Company come from
farms and decisions relating to such
procurement can have profound
implications on global resources, climate
change and farmers livelihoods.
There is a clear business case to source
raw materials sustainably. By taking a
long-term view, your Company can ensure
security of supply, reduce costs and
protect scarce resources. This long-term
approach can also create a win-win for the

Company and the farmers.
to more than 98% of total waste being

recycled in environmentally-friendly ways.
Under the USLP, your Company has

committed to source 100% of its
agricultural raw materials sustainably.
By 2012, your Company sourced 70% of
its agricultural raw materials sustainably.
All of the palm oil was from sustainable
sources as 100% of palm oil volumes
of India were covered by Green Palm
certificates by end of 2012. During the
year, over 60% of tomatoes used in Kissan
Ketchup in India were from sustainable
sources. Your Company aims to source
100% of tomatoes from sustainable
sources by 2015.
A significant reduction was delivered

in overall plastic and paperboard
consumption in India. In 2012, a number
of projects were implemented across
categories, resulting in a potential
annualised reduction of more than 1,500
tonnes of plastic and over 700 tonnes of
paper.
Partners in progress
Your Company takes responsible product
manufacturing beyond the factory gates
and ensures that partners are involved
in sustainability. Partner to Win is
an inclusive programme where your
Company works with suppliers jointly
on sustainability and other pillars like
capacity, innovation, world class service
and value.
Your Company has taken various initiatives

to reduce waste from its office sites. The
HUL Campus at Mumbai has Effluent
Treatment Plants which treat 100% of
sewage and chemical waste. The recycled
water is used for the cooling tower for
airconditioning, landscaping and flushing.
The site, therefore, is a zero discharge site.
Dry and wet garbage is separated at the
Campus. A vermiculture organic digester
on the campus processes this waste. This
is being used as fertiliser. The hazardous
waste is disposed at the authorised site.
Reuse waste
Sachets and pouches create less waste
by weight per millilitre of product sold and
are therefore considered more efficient
for packaging than bottles. However, it has
been challenging to find an economically
viable way of collecting and recovering
sachet waste due to its low weight. This
requires working in partnership with
other users of flexible plastic as well as
municipal authorities and NGOs. The
technology options being worked on
include pyrolysis, cement co-processing

and mechanical recycling. Pyrolysis
offers a closed loop system which involves
catalytic depolymerisation of plastics into
fuel. The fuel can be used in our factories
as furnace oil or can be used for similar
industrial applications. Your Company has
evaluated technical proof of principle
of turning sachets, pouches, and other
flexible plastic waste into fuel oil at a
viable cost. The factory in Puducherry has
successfully used the fuel to power its
boiler to check feasibility of this approach.
Your Company is studying the long-term
techno-commercial feasibility of different
technology options to take this forward. To
reduce packaging waste, your Company
introduced refills in several products
such as Lifebuoy, Vim Liquid and Kissan
Ketchup.
Recycle waste
In order to create awareness and promote
segregation of post-consumer use of
packaging waste, HUL and Bharti Retail
implemented a joint programme named
Go-Recycle. As part of the programme,
consumers were encouraged to bring
empty plastic bottles and pouches of
any brand from select FMCG categories.
In return, the consumers were given
discount coupons for future purchases. In
2012, HUL and Bharti Retail Go-Recycle
programme engaged over 100,000
shoppers over six month period.
Waste management & resource

optimisation
Your Company pursues a three pronged
approach to waste management: Reduce,
Reuse and Recycle.
Reduce waste
Reduction in total waste per tonne from
our manufacturing sites is 77% against the
2008 baseline. A total of 31 HUL factories
are now 100% zero non-hazardous waste
to landfill. Emphasis on recycling has led
Products Lifecycle Sustainability
PRINCIPLE 3: EMPLOYEES WELL-BEING

BUSINESSES SHOULD PROMOTE THE WELL-BEING OF ALL EMPLOYEES
SIR, WHAT ARE THE CRITERIA

FOR APPOINTMENT TO THE
BOARD? ASKED A YOUNG
MANAGER TO LORD COLE,
UNILEVER CHAIRMAN, ON HIS
VISIT TO THE HEAD OFFICE IN
MUMBAI IN 1965.
CONTRIBUTION, COMPETENCE
& CHARACTER, AND THE LAST
TAKES PRECEDENCE OVER THE
FIRST TWO, HE REPLIED.
The above statement made in Mumbai by
Lord Cole, Unilever Chairman, some 48
years ago still holds true for your
Company. Hindustan Unilever Limiteds
stature, respect and credibility flows from
its rich heritage, the people who have led
the Company over the years and from
those who work here now. The Companys
people give it the energy; they nurture and
build a culture of performance as well as
shape the future. Your Company believes
that people arent just a part of the
business; they make this organisation
what it is.
Your Company is well known for nurturing
talent and building leaders. This has
been possible through the leaders build
leaders philosophy. This mindset ensures
that leadership gets ingrained across
the Company, rather than placing it as
the responsibility of a function or a few
individuals. Your Companys talent and
leadership practices have been recognised
as the Company emerged the No. 1
Employer of Choice in the Nielsen survey
for the second year in a row. B-School
students selected HUL as their Dream
Employer for the fourth consecutive year.
Training
Your Company provides development
avenues like training programmes,
coaching and mentoring by senior
managers, on-the-job training,
secondments etc. to its employees. The
Company follows a holistic 70:20:10
capability building approach across
functions, under which 70% of all
capability is built on the job, 20% through
10
Employees Well-being
coaching and short term projects and

10% through classroom learning. There
are multiple forums for learning including
quarterly webcasts, regular guest
sessions from industry stalwarts and
portals to ensure constant flow of best
practices.
The Company has also developed a world
class state-of-the-art training center at
the Mumbai Campus in 2012. During the
year, your Company invested over 15,000
mandays on learning and had over 41,000
registrations for e-learning courses
across all work levels.
Your Company has undertaken a host of
programmes in the space of capability
building on the shopfloor. The Shopfloor
Skill Upgradation programme, Sparkle,
a centrally hosted intranet based tool,
supports skill mapping, skill assessment,
performance assessment and gap analysis
for the shopfloor employees. Stepping
into One (SIO), a capability intervention,
supports building the talent pipeline for
all shopfloor employees into potential
executives.
Occupational Health & Safety

Occupational Health & Safety is considered
one of the prime responsibilities of the
Company. The entire line management is
responsible for driving physical, mental
and emotional well-being with ample
support from a well qualified medical
team. The CEO heads the Central Safety,
Health & Environment Committee, which
reviews the health & safety performance
of the Company.
Your Company has over 16,000 employees,
who are important stakeholders of the
Company. Their health and well-being is
important as healthy employees lead to
better workplaces. The Company engages
in a range of activities to communicate
the importance of personal well-being to
employees.
Reduce workplace injuries and

accidents
As part of the Unilever Sustainable
Living Plan, the Company aims to reduce
workplace injuries and accidents.
Procedures and appropriate facilities
have been put in place to ensure safety

of everyone employees, contractors
and visitors on our premises. Safety
performance is monitored through a
set of key performance indicators and
is reviewed regularly by the Companys
Management Committee. We achieved
62.5% reduction in the Total Recordable
Frequency Rate (TRFR) against the 2008
baseline. The Company also actively
promotes a culture of safety beyond
work. All employees and their families
are involved in home safety and road
safety initiatives. All employees undergo
mandatory training for safety and
compliance procedures.
Improve employee health and

nutrition
For the last eight years, the Company
has been regularly performing basic
preventive health checks for all
employees. The medical and occupational
health strategy addresses the top three
health risks that have been identified
mental health, lifestyle factors and
ergonomic factors.
In the lifestyle management programme,
employees are assigned colour codes
(green, amber and red) based on their
state of health. Employees identified in the
amber and red categories are provided
support and treatment as necessary.
Approximately 15,000 employees have
been covered by the programme in India.
This initiative has shown a steady decline
of those in the red category over the last
eight years. Currently, only about 4% of the
employees belong to the red category.
Work-Life Balance
There are several initiatives undertaken by
the Company to promote work-life balance
for both men and women. Some of these
initiatives are:
C
areer by Choice programme: A
unique career comeback programme
that provides a platform for women
looking for opportunities to work
flexibly and part time after a career
break. There are over 20 women
associated with the Company under
this programme across functions.
G
ender Balance Network: The
Company has launched a Gender
Balance Network which works around
creating a truly inclusive and diverse
organisational culture.
A
gile Working: Under this umbrella,
your Company is working on a host of
policies and practices which will help
employees work flexibly, anytime,
anywhere. Work from home, flexihours and part time / reduced hours
policy (including a job share policy)
are some of the initiatives introduced
in this direction. These policies are
supported with technology and office
infrastructure by the Company.
W
orkplace facilities: The Companys
Head Office at Mumbai has a day care
facility, Unilever shop, cafe, bank,
florist, gymnasium, badminton /
squash court etc.
C
areer Break Policy: The facility
of a career break is available to all
managers of the Company. Such break
can be availed for a duration of up to
five years in total for many reasons
including maternity, further study,
sabbatical, adoption etc.
M
aternity / Paternity leave: Paid six
month maternity leave and two week
paternity leave facility is extended to
employees at all levels.
Equal Opportunity of Employment

For recruitment of management and
supervisory staff / officers, clear
guidelines exist concerning the
identification and authorisation of
vacancies to be filled, with appropriate
authority levels for these. For recruitment
of skilled as well as unskilled labour, the
guidelines specify merit-based approach
for selection of candidates from lists
provided by local employment exchanges
where the units are located. Your Company
has a sharp focus on gender diversity.
About 27% of the Company managers are
women. Due to various gender balance
initiatives, the organisation has witnessed
an 8% shift in the Gender Balance Ratio
over the last two years.
Secure workplace
Grievance redressal
Your Company has a policy on affirmative

action and a policy against sexual
harassment to ensure a harassment free
workspace for its employees. Sexual
harassment cases are dealt under
the Code of Business Principles. All
employees of your Company and other
subsidiaries are communicated on the
various aspects of sexual harassment at
work through e-mailer articles and other
means of communication regularly.
Your Company has clearly spelt out

guidelines to prevent use of child labour,
forced labour, discriminatory employment
and sexual harassment in its own
operation as also for its business partners
/ suppliers.
Freedom of association,
participation and collective
bargaining
Your Company follows the principle
of freedom of association and right to
negotiate. Promotion from workman
and staff to officer has an exclusive and
transparent process called Stepping Into
One. Each workman eligible under the
programme gets ample chance to make it
to the next level.
The human rights practices of your
Company assure respect for the right
of employees to freedom of association
and recognition of employees rights to
collective bargaining, where allowable by
law. There are 96 employee associations
which have been recognised by the
management. Nearly 9,000 permanent
employees are members of these
associations. During the last year, the
Company has entered into a long term
settlements with over 3,000 employees
covering eight factories across India.
The CoBP and Whistle Blower Policies

provide for reporting of such issues in
confidence. The Company has provided
for a dedicated e-mail address and a 24
hours hotline to which all whistle blower
complaints can be sent. The identity of
the complainant is always protected. The
Company has put in place systems and
mechanisms to ensure non-retaliation and
non-victimisation of the complainant.
All complaints, including complaints of
sexual harassment, received are dealt as
per the CoBP protocols. The total number
of complaints received have been reported
under Principle 1. During the year, there
have been no complaints alleging child
labour, forced labour, involuntary labour
and discriminatory employment.
Fair labour Practices

Your Company has an excellent record
on industrial relations and since 2008
had maintained a record of near-zero
loss of mandays due to industrial unrest.
However, in 2012-13, the Company lost
over 4,000 mandays due to industrial
unrest. The Company currently has over
6,000 employees which are employed on
contractual / temporary basis.
Employees Well-being
11
PRINCIPLE 4: STAKEHOLDER ENGAGEMENT

BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE TOWARDS ALL
STAKEHOLDERS, ESPECIALLY THOSE WHO ARE DISADVANTAGED, VULNERABLE AND MARGINALISED.
THE VALUE OF OUR BUSINESS

DOES NOT LIE IN ITS BALANCE
SHEET, BUT IN ITS
STAKEHOLDERS.
Engaging with stakeholders such as
consumers, customers, shareholders,
investors, employees, media and NGOs is
critical to growth. The Company believes in
listening to stakeholders and responds to
their ideas and concerns. Such
stakeholder insights help your Company
develop new products and improve
processes.
Many of the issues the Unilever
Sustainable Living Plan seeks to address
require the Company to engage with
various stakeholder groups such as
Government, NGOs, IGOs, Corporates
etc. to create an environment that is
supportive of meeting the big sustainability
challenges the world faces. Reaching the
Unilever Sustainability Living Plan targets
depends on good relationships with a
range of people and organisations that
have a stake in our business.
Consumers
Your Companys business strategy
clearly states that the first responsibility
lies towards consumers. When we are
consumer centric, our shareholders will
be rewarded. This drives the Company
to keep the consumer at the centre of all
plans and decisions.
The Company has raised the levels of
consumer engagement through Levercare,
a toll free number where Consumers can
reach the Company directly. Levercare
is a win-win for both the consumer and
the Company. It gives consumers the
promise of better service and provides
the Company the opportunity to connect
with consumers directly and understand
their needs, expectations and aspirations.
It helps consumers voice their grievances

and offer suggestions and ideas. The
helpline provides insights about Company
brands to the consumers. During the year,
more than two lakh consumers contacted
your Company through the Levercare
helpline.
initiative with Bharti Walmart, on Waste

Management, 495 Kilograms of plastic
waste was collected and recycled. Your
Company partnered with METRO on
World Environment Day to educate the
consumers about living a greener life and
reducing waste.
Customers
The Company has taken the initiative of

appointing an Ombudsman for resolving
Consumer and Customer grievances and
disputes. The details of the Ombudsman
scheme are provided under Principle 9.
The Company has direct coverage of more

than two million outlets through the vast
distribution network of more than 2,500
re-distribution stockists. Your Company
has undertaken some important initiatives
during the year to become more customer
centric and win in the market place. These
initiatives include establishing dedicated
call centres for distributors as well as
retailers to reach out to the Company.
The call centres set up for retailers have
helped millions of outlet owners reach out
directly to the Company. Your Company
receives more than 600 calls a day from
distributors and retailers. The calls
received from retail outlets provide useful
insights and help the Company understand
issues and opportunities in the market
place better and address them effectively.
Your Company is now the preferred
supplier to the leading modern trade
customers and is a partner of choice on
all new initiatives. Your Company believes
in long term win-win partnerships with its
business partners. The Company works
with Joint Business Planning (JBP) at the
core, which captures the business from
not just a manufacturers perspective but
also brings in the voice of the shopper and
the retailer into the planning horizon.
A testimony to the success of this
win-win partnership with the retailer
has been through Unilever winning the
Best Supplier award across Bharti
Walmart and TESCO for two years in a
row. These awards have been conferred
for your Companys consistent approach
on building long term sustainable
partnerships.
Your Company has also worked with
the customers like Bharti Walmart and
METRO to drive sustainability. In a joint
12
Stakeholder Engagement
Shareholders and Investors

Your Company believes in creating
long term value for the shareholders.
The Company regularly interacts with
shareholders through multiple channels
of communication such as results
announcement, annual report, media
releases, Companys website and subject
specific communications. The Annual
General Meeting of shareholders is
an important annual event where the
shareholders of the Company come in
direct communication with the Board of
Directors and the management. The Board
engages with shareholders and answers
their queries on varied subjects.
The Investor Relations team of your
Company interacts regularly with
investors and analysts, through quarterly
results calls, one-on-one and group
meetings, participation at investor
conferences and the annual investors
meet. The Investor Relations philosophy
of your Company is focused on delivering
quality Investor Relations practices built
on a strong foundation of transparency
and governance. Your Company was
recognised at the Investor Relations Global
Rankings (IRGR) 2012 in three categories:
Best Online Annual Report in India
Best Financial Disclosures in India
Top Corporate Governance in India
Government
All interactions with the Government,
legislators and regulators are done by
duly authorised and appropriately trained
individuals, with honesty, integrity,

openness and in compliance with local
laws and in accordance with the Code of
Business Principles and Policy.
Global People Survey (GPS): The

Company conduct GPS to measure the
level of engagement of employees.
NGOs
Non-Government Organisations are
important stakeholders that your Company
interacts with. Your Company works in
partnership with NGOs to deliver on many
of the Sustainable Living Plan initiatives.
Media
Your Company regularly interacts with
the electronic, print, television and online
media through press releases, media
events and during the financial results
announcements.
Employee Engagement
CEO Report back: Quarterly

performance update from the CEO to all
employees.
Annual Review: All managers are invited
to the Annual Review in four major
metros.
Others: The Company has an inhouse magazine, which provides a
platform to employees to connect,
bond, inspire, express and celebrate
their achievements. To engage with
employees directly, the CEO writes
an internal blog. Employees can read
and comment on the blog and interact
directly with the CEO.
Other Key Opinion Formers

Every year, your Company organises an
event and provides update on the progress
of the Unilever Sustainable Living Plan
to various Key Opinion Formers (KOFs).
In April 2013, KOFs representing various
stakeholder groups such as NGOs, IGOs,
Government bodies, industry bodies and
consumer organisations attended the
Sustainable Living Plan event at
New Delhi.
We have several communication

processes instituted to ensure a twoway communication channel with our
employees. These include:
PRINCIPLE 5: HUMAN RIGHTS

BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS
in its operations, by upholding values
and standards
THE COMPANY CONDUCT ITS

OPERATIONS WITH HONESTY,
INTEGRITY AND OPENNESS
AND WITH RESPECT FOR THE
HUMAN RIGHTS AND
INTERESTS OF EMPLOYEES.
in relationships with suppliers, and

by working through external initiatives,
such as the United Nations Global
Compact.
The Code of Business Principles of the

Company upholds the principles of human
rights and fair treatment. The Code
provides that the Company conduct its
operations with honesty, integrity and
openness and with respect for human
rights and interests of employees. The
Company seeks to uphold and promote
human rights in three ways:
The Unilevers Supplier Code reinforces

the principles of Human Rights and Labour
Rights for all suppliers of the Company.
In accordance with the Company policy,
all suppliers are expected to respect the
principles of the Supplier Code and adopt
practices that are consistent with that
of the Company. The Unilever Supplier
Code is available on the website of the
Company and can be accessed at www.
hul.co.in/aboutus/purposeandprinciples/
business_partner_code/. Your Company
has not received any complaints during the

last financial year with respect to breach
of the principle of Human Rights.
Unilever globally is a signatory to
the United Nations Global Compact
Programme and is fully committed to the
principles of the UN Global Compact which
cover human rights, labour practices,
environment commitment and prevention
of corruption in business organisations.
The UN Global Compact is a symbol of
leadership in a complex business world
and provides a forward looking forum
in which the United Nations, companies
and civil society organisations can come
together in an open and transparent
dialogue. The Companys CoBP
mechanism upholds these principles in all
aspects of its business operations.
Human Rights
13
PRINCIPLE 6: ENVIRONMENT
BUSINESS SHOULD RESPECT, PROTECT, AND MAKE EFFORTS TO
RESTORE THE ENVIRONMENT
From refrigeration
WE WILL DE-COUPLE GROWTH FROM RESOURCE USE &
RE-COUPLE GROWTH WITH SOCIETAL GOOD.
Your Companys vision is to double the size of the business whilst reducing
the environmental footprint and increasing positive social impact. To achieve
this, it is important to assess and reduce environmental impact across the
value chain. The Company is focusing on four priority areas greenhouse
gases, water, waste and sourcing. The figures below demonstrate that
manufacturing accounts for only 3% of the environmental impact in the value
chain. Hence it is important to work on the footprint beyond our factory gates.
Our carbon footprint across the value chain

26%
3%
RAW MATERIALS
2%
68%
MANUFACTURE TRANSPORT
Reducing Greenhouse Gases

From manufacturing
In 2012, the Company reduced CO2
emissions per tonne of production in India
by 22% compared to the 2008 baseline.
This was achieved through various green
initiatives such as the use of biomass
boilers, thermic fluid heaters and hot
air generators at factory sites. Biomass
boilers were commissioned at two more
sites in 2012, increasing the total number
of sites to 11. These projects helped
increase the share of renewable energy to
19% by 2012.
Your Company took up several
environment-friendly initiatives in its
manufacturing operations such as setting
up a co-generation power unit, use of sky
light pipes which allow natural sunlight for
illumination on the shopfloor and the use
of LED lights and energy efficient motors.
14
Environment
1%
CONSUMER USE
DISPOSAL
From transport and travel

In 2012, CO2 emissions from our logistics
network reduced by 5% (from 83.2 kg CO2
per tonne to 79.1kg CO2 per tonne). Your
Company continued to focus on travel
distance and load capacity. In 2012, direct
despatches were maximised in a way that
the distance travelled reduced whereas
the load carrying capacity increased
significantly. During 2012, the Company
used railways to transport products,
leading to a 3% increase in loading ability.
For transporting by road, the Company
used new trucks that have greater height
and can carry more volume. This helped
increase the overall loading ability from
89% to 93%.
In 2012, over 2,000 meetings were
held utilising the telepresence facility,
dramatically cutting business related
travel trips to and from India. Your
Company also has 30 video conferencing
facilities in key locations across India.
This new way of conducting meetings
reinforces the Companys belief in
agile working a flexible approach that
enables employees to work anytime, from
anywhere, as long as business
needs are met.
In 2007, your Company stopped purchasing

Hydrofluorocarbons refrigerant cabinets
and replaced them with new cabinets that
use climate-friendly Hydrocarbon (HC)
refrigerants. These freezers have brought
about a significant reduction in our carbon
footprint. More than 30,000 such green
freezers with HC technology have been
deployed in India.
Reducing Water footprint

From manufacturing process
Your Company has reduced water usage
in our manufacturing operations by 29%
compared to the 2008 baseline. Rainwater
harvesting has been implemented in 22
sites out of a total of 38 sites, including five
sites operated by Unilever India Exports
Limited, a wholly owned subsidiary of the
Company. Some of the manufacturing
sites have the potential of returning
more water to the ground than is being
consumed by them. This has been
achieved by a series of initiatives such
as collecting and recycling rainwater,
recycling of treated effluent water through
Reverse Osmosis technology, optimising
process operations and other initiatives.
30 of our 38 manufacturing sites as zerodischarge sites.
From laundry process

Studies show that rinsing clothes accounts
for the bulk of water consumption in the
laundry process. On an average, three to
four buckets of water are used for rinsing
per wash. Rinsing alone accounts for 80%
of water consumption in laundry for many
households that rely on washing clothes
by hand. The Company is working towards
solutions which can help consumers use
less water for rinsing, while giving them
the same effective cleaning performance.
Magic water saver in laundry was
launched in May 2012 as a pilot in Andhra
Pradesh. It significantly helps reduce
water consumption. Just a capful of Magic
in the very first bucket of rinse helps
remove all the lather and soap and thereby
helps save up to three buckets of water

per wash. Another laundry product which
helps reduce water required in rinsing is
the Comfort one Rinse fabric conditioner,
which helps consumers save two buckets
of water per wash.
system. The framework is modeled on

ISO-14001 and OHSAS-18001 and is
externally verified every three years. It
encompasses identification and evaluation
of environmental aspects of its products,
operations, activities or services.
Waste Management
All the emissions / waste generated by

your Company are within the permissible
limits given by CPCB (CentralPollution
ControlBoard) / SPCB (StatePollution
ControlBoard).
Your Company is working on various

initiatives focusing on reducing, reusing
and recycling waste material. Details are
listed in the section on waste management
under Principle 2.
Sustainable Sourcing
Under the Unilever Sustainable Living
Plan, your Company has committed to
source 100% of agricultural raw materials
sustainably. Details are listed in the
section on Sustainable Sourcing under
Principle 2.
Environment Management
Systems
Your Company monitors progress on
sustainability at different levels as
mentioned below:
Governing Council: The Sustainability
Governing Council is supported by
sustainability champions and reports
the progress to the Management
Committee and CEO on a quarterly
basis. The top leadership from
respective business verticals and
functions constitutes the Governing
Council. The Company has a governance
mechanism and score card to monitor
the progress on USLP commitments.
Your Company continues to deal with

a matter that is currently sub judice
and relates to allegations of breach of
environmental operating guidelines at the
Companys erstwhile thermometer factory
at Kodaikanal in Tamil Nadu state.
remediation. Only soil remediation work is

remaining. Your Company will commence
soil remediation work at the factory
site once the decision on the clean-up
standard has been taken and consent
given by the Tamil Nadu Pollution Control
Board.
Your Company will continue to present
facts to the authorities and the public as
we have always done in this case. Your
Company has made available all details on
this matter on its website at: http://www.
hul.co.in/Images/Update_on_Erstwhile_
Kodaikanal_Factory_tcm114-195572.
pdf. Your Company remains committed to
conducting all operations with honesty,
integrity and openness.
Your Company has acted in an absolutely

transparent and responsible manner since
the issue was first brought to our notice in
March 2001 by local NGOs. Your Company
immediately closed the factory on its own
and launched an investigation. There
were no adverse impacts on the health
of employees or the environment. This
has been confirmed by many independent
studies. There was limited impact on
the soil at some spots within the factory
premises which required remediation.
Over the years your company has taken
several actions for ensuring appropriate
Environment Sub-Committee: The

Environment Sub-Committee is led
by the Executive Director, Supply
Chain, and has members from various
departments like brands, packaging,
R&D, legal and factories. The team
engages every two months to review
environment performance and define
the implementation strategy.
Risk assessment
All manufacturing sites have implemented
Unilevers Environment Care
Framework Standards, which require
all Unilever operations to establish a
formal environmental management
Environment
15
PRINCIPLE 7: POLICY ADVOCACY

BUSINESSES, WHEN ENGAGED IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD
DO SO IN A RESPONSIBLE MANNER
MANY OF THE IMPACTS OF

OUR OPERATIONS FALL
OUTSIDE OF OUR DIRECT
CONTROL, SO WE NEED TO
ENGAGE GOVERNMENTS TO
CREATE AN ENVIRONMENT
THAT IS SUPPORTIVE TO
MEETING THE BIG
SUSTAINABILITY CHALLENGES
THE COUNTRY FACES.
The Code of Business Principles of the
Company provides that any contact by the
Company or its agents with Government,
legislators, regulators or NGOs must be
done with honesty, integrity, openness and
in compliance with applicable laws. In
accordance with the Company policy, only
authorised and appropriately trained
individuals can make interactions with the
bodies mentioned above. Any contact
between the Company, its representatives
and officials, aimed at influencing
regulation or legislation, is required to be
done with prior internal approvals.
16
Policy Advocacy
The Company practices pro-active

advocacy with an aim to bring about a
positive impact in the business
eco-system and communities. Proactive
advocacy for us is not just about lobbying
the Government for securing certain
benefits for industry, but is also about
advocating certain best practices for
benefit of the society at large.
Your Company seeks to influence public
and regulatory policy in a responsible
manner and most of such engagements
are through industry bodies and
associations. Many of our Board and
senior leadership team members are
associated with several global bodies like
the World Economic Forum (WEF), United
Nations Global Compact (UNGC), apart
from the leading business Chambers.
The Company represents in many
industry and business associations which
work in the relevant areas. Important
associations include the Confederation
of Indian Industry (CII), the Federation
of Indian Chamber of Commerce and
Industry (FICCI), the Associated Chamber
of Commerce and Industry of India
(ASSOCHAM), the Bombay Chamber of
Commerce and Industry (BCCI) and the
Advertising Standards Council of India

(ASCI). Your Company participates in
multi-stakeholder debates and, when
relevant, responds to public consultations.
Some of the key issues on which
your Company has engaged with the
Governments during the last year include:
Plastic waste management and
recycling;
Building greater awareness of
handwashing practices to reduce
diarrhoea and pneumonia incidences;
Seeking Government support for
incentivising more businesses to
adopt sustainable procurement,
manufacturing and selling practices;
Retention of small value packs for the
economically challenged consumers,
when the Government intended to
standardise most goods pack sizes;
Seeking action against counterfeiting
of goods in the country.
PRINCIPLE 8: INCLUSIVE GROWTH

BUSINESSES SHOULD SUPPORT INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT
WE STRONGLY FEEL THAT

WHAT IS GOOD FOR INDIA IS
GOOD FOR HUL.
Your Company has always believed in
Doing Well by Doing Good and strongly
feels that what is good for India is good for
HUL. The Unilever Sustainable Living Plan
supports this philosophy and aims to
enhance the livelihoods of hundreds of
thousands of people by 2020.
creates income generating opportunities

for people in rural India. Project Shakti has
48,000 Shakti entrepreneurs (called Shakti
ammas) in 15 states. The Shakti ammas
are enrolled, trained and provided various
other inputs. Shakti ammas now cover
over 135,000 villages and serve 3.3 million
households.
To meet this ambitious goal, the Company

has embraced inclusive growth and has
taken steps to embed sustainability beyond
the factory gates and the Companys
immediate operations.
During 2012, our work with Shakti ammas

helped them further grow and develop
their businesses. Shakti ammas have
proved successful in increasing our
presence in rural areas and building
strong local relationships with consumers,
which encourages brand loyalty. The
model we use improves the lives of Shakti
ammas and usually leads to the doubling
of income of a Shakti household.
The Company has a vast supplier and

distributor network that touches small
scale farmers, distributors and retailers.
If these small scale businesses prosper,
they will be able to invest more in their
business and consequently your Company
will benefit through better certainty of
supply and increased demand.
The programme was extended in 2010 to

include Shaktimaans who are typically
the husbands or brothers of the Shakti
ammas. Shaktimaans complement
our Shakti ammas. Today, over 30,000
Shaktimaans across India sell the
Companys products on bicycles to
surrounding villages.
Hence, we have a wide range of initiatives

from sourcing to distribution, focused on
improving the livelihoods of small-scale
businesses.
Kwality Walls vending operations
Helping smallholder farmers

Your Company works with smallholder
farmers across India to implement
sustainable agricultural methods and
improve their crop yields. The Company
supports and encourages farmers to adopt
advanced technologies for better yields
by imparting training and through regular
field-monitoring. The Company also helps
farmers with information and other inputs
on good agricultural practices like drip
irrigation, nutrient management, pest and
disease management.
Supporting small-scale
distributors
Project Shakti
Project Shakti is our flagship rural
distribution initiative that focuses on
enhancing livelihoods in small villages.
This project benefits your Company by
enhancing its direct rural reach and also
Kwality Walls mobile vending operations

provide entrepreneurship opportunities
to over 6,500 migrants across India.
Uniforms, first-aid kits, behavioural and
basic sales training and financial support
are provided through channel partners
along with initial stocks on credit and a
vending cart with freezers. In most cases,
a vendor can make Rs. 3,000 - Rs. 4,500
a month retailing the frozen desserts.
A few of the vendors have now become
distributors themselves.
Community well-being
The Hindustan Unilever Foundation is a
wholly-owned subsidiary of HUL engaged
in community projects on water for public
good. The Foundation has undertaken
water conservation and storage projects
in villages of Rajasthan, Andhra Pradesh,
Madhya Pradesh, Gujarat, Tamil Nadu,
Karnataka and Maharashtra.
The Foundation has adopted a partnership
approach for project execution and
is working with reputed NGOs and
communities. These initiatives are also
facilitated by government agencies such

as NABARD and state governments.
The Foundations partnerships have
contributed to a collective and cumulative
water harvest, storage and conservation
potential of more than 25 billion litres as of
March 2013. Over the years, we expect one
million people to benefit from our efforts
and a 15% rise in crop production in the
areas of our intervention villages across
India.
The current initiatives are:
1. Tank cascade development for
livelihood security: Revival of
traditional tank systems in Gundar
basin, Tamil Nadu
2. Integrated Water Resource
Management and conjunctive use
of water in the command area of
irrigation systems of North Gujarat
3. Water Harvesting and Utilisation
Project in Maharashtra
4. Integrated Watershed Management
Programme in Madhya Pradesh
5. Community led sustainable
management of water resource for
promotion of livelihoods and secured
natural base in districts of Karnataka
6. Water Commons: Influencing Practice
and Policy in districts of Madhya
Pradesh, Rajasthan, Karnataka,
Maharashtra and Andhra Pradesh.
Read more on this on our website - www.
hul.co.in/sustainable-living/casestudies/
Casecategory/Water-Conservation.aspx.
You can also download the report Story
of Water, from our website www.hul.co.in/
Images/StoryofWatertcm114286298.pdf
The Hindustan Unilever Foundation works
with NGOs who implement the project
on the ground. The communities are
involved in the planning and execution of
the initiative along with the NGOs. This
engagement and involvement approach
is the key to smooth and successful
ownership of the initiative by the
community.
Inclusive Growth
17
PRINCIPLE 9: CUSTOMER VALUE

BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CUSTOMERS AND
CONSUMERS IN A RESPONSIBLE MANNER
CUSTOMER VALUE IS NOT

ABOUT INCREASING
PRODUCTIVITY OR
MANUFACTURING CAPACITY,
BUT ABOUT CUSTOMER
SERVICE.
Your Company has a direct coverage of
more than two million outlets through the
vast distribution network of more than
2500 re-distribution stockists. The
Company constantly undertakes initiatives
to become more customer centric to win in
the market place and serve customers and
consumers better.
Partnering with customers

Your Company believes that a true
partnership with re-distribution stockists
is a key ingredient of the Companys
growth strategy. Your Company has
launched various initiatives in this regard.
Creation of a customer credo is one
such initiative which encapsulates the
philosophy of keeping customers as key
priority for the business.
Your Company has established dedicated
call centres for distributors as well as
retailers to reach out to the Company. The
call centre set up for retailers has helped
millions of outlet owners reach out directly
to the Company.
18
Customer Value
The Company, through the use of the

Customer Differentiation Tool, rewards
customers for going an extra mile in
partnering and helping the business
reach its goals. This is an objective and
transparent tool comprising certain
parameters that are shared with our
redistribution stockists.
Under the Companys Customer
License programme, all employees
in the Customer Development function
spend time with customers to understand
them better.This has helped place the
consumer and customer at the heart of
everything your Company does.
Customer Insights
Your Company continuously strives to
understand the pulse of its consumers
and customers through various research
activities. These include tracking
consumer sentiments and perceptions
through the brand health tracks and
understanding actual consumer purchase
behaviour for various FMCG categories on
an ongoing basis through the Household
Panel. Some of the consumer insight
initiatives include Consumer Shoes,
Consumer Voice and Consumer Insights.
In Consumer Shoes, the objective is to
discover how a consumer feels when they
use the Companys products. This helps
to step into the consumers shoes and
give feedback on the product based on
actual product experience. The Company

has also organised Factory Connects
wherein consumers were brought in the
factory premises for interactions, exposed
to the stringent quality controls. Audio
and videos of these visits are fed back to
factory employees.
Your Company has also set up a state-ofthe-art Customer Insight and Innovation
Centre (CiiC) in Mumbai, the latest
amongst seven such centres across
Unilever worldwide. This centre is
equipped with the latest technologies to
help us work closely with our distributive
and modern trade partners to develop
sharp and incisive shopper insights and
platforms to win with shoppers.
Responsible Marketing and

communication
Your Company is committed to responsible
marketing and has clearly defined
principles which guide marketing
communications. Your Company
recognises the influence of marketing
and advertising on consumers and
takes the responsibility seriously. Your
Company ensures that all the claims
made in advertising are backed by sound
scientific substantiation and that all such
communication passes the test of being
legal, decent and honest.
Your Company also supports the
development of self-regulatory codes
for all its marketing and advertising
activities and applies these codes across
the businesses. Your Company is one of

the founder members of the Advertising
Standards Council of India (ASCI), a self
regulatory body which has developed
principles and codes in the area of
advertising and marketing. During the
year, complaints filed with ASCI against
advertisements made by your Company
were 25, of which two complaints were
pending at the end of the year.
Labels and Pack Information

All Company products comply with the
applicable regulations such as the Drugs
and Cosmetics Act, Legal Metrology Act,
Bureau of Indian Standards Specifications,
Trademark Act and Copyright Act, Food
Safety and Standards Act, Tea Act, Tea
Board Regulations etc for Labels and Pack
Information.
Ombudsman
In line with one of the Companys key
tenets of Consumer and Customer
Centricity, the Company commenced
a process of resolving consumer and
customer disputes and grievances
through an alternative disputes redressal
mechanism. The Company appointed four
retired Judges of different High Courts,
one in each region, to act as Ombudsman
to hear the Companys consumers and
customers in a bid to resolve long pending
disputes. The Ombudsman independently
reviews the merits of the complaint and
decides on the issue. The Company has
taken the view that the decision arrived
at such disputes resolution meetings,
while being fully binding on the Company,
may not be binding on its consumers
and customers and if they choose to
continue with litigation, they are free to
do so. These meetings were held in all
the four regions and achieved reasonable
success. The Company believes that
such independent dispute resolution
mechanism will further reinforce its
commitment and credibility with its
consumers and also set new benchmarks
for the industry.
Your Company does not advertise food and

beverage products to children under 12
years and does not make communication
related to food and beverage products
in primary schools, except for products
which fulfill specific nutrition criteria that
are based on accepted scientific evidence
and/or applicable under national and
international dietary guidelines.
Thefood and beverage products also carry

information on energy, protein, sugars,
fat and also on saturated fat, fibre and
sodium, where relevant.
In addition to national laws and selfregulatory codes in India, your Company
also applies Unilevers principles to
the marketing and advertising of all the
food and beverage products directed at
children. These principles require that
marketing practices:
do not convey misleading messages
do not undermine parental influence.
Advertisements always show parents
as gatekeepers to the product being
consumed
do not encourage pester power
do not suggest time or price pressure
do not encourage unhealthy dietary
habits
do not blur the boundary between
promotion and content.
The Company has been impleaded in

certain legal cases, including those
relating to consumer / customer disputes.
At the end of the year, there were 77
consumer cases pending.
Inclusive Growth
19
THE ROAD AHEAD

Your Company is adapting to the changing
times to meet the everyday needs of
its consumers. With a sharp focus
on sustainable growth, the Company
has taken some bold steps that will
help deliver faster growth and reduce
environmental impact while also
increasing positive social impact. Doing
this calls for an entirely new way of doing
business. But the change also demands to
recommit ourselves to the age-old values
of integrity, responsibility, respect and a
pioneering spirit.
20
The road ahead
As your Company walks on this path, it

believes in laying the foundation of long
term growth that will set it out as leader
in the industry and benefit a wide range of
stakeholders.
In many ways, the Company is articulating
what its founders saw a long time ago
that how in the pursuit of the business, it
is possible for the Company to do well and
have a positive social impact on people and
the community. In this sense, the Unilever
Sustainable Living Plan is anchored in the
current times and yet consistent with the
philosophy with which the founders set up
this business a long time ago.
Creative Consultants: AICL Communications Limited (info@aicl.in).
HUL Investor Relations App

Scan the code given below to download the
HUL Investor Relations App for iOS and Android
For further information on our

social, economic and environmental
performance, please visit our website
HINDUSTAN UNILEVER LIMITED

Registered Office:
Unilever House,
B. D. Sawant Marg, Chakala,
Andheri (East),
Mumbai - 400 099
WWW.HUL.CO.IN

2012 2013

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BUSINESS RESPONSIBILITY

CorporateRegister.com Limited 30-04-14

CorporateRegister.com Limited 30-04-14

Strong values inspired the Companys visionary founders to make innovative

OUR BUSINESS STRATEGY

Double the size of the business, whilst

We live in a world where volatility and

We will lead for responsible growth,

The Compass lays out the path that will

through four distinct pillars. It describes

Business Responsiblity Report 2012-13

Making Sustainable Living Commonplace

CorporateRegister.com Limited 30-04-14

The Unilever Sustainable Living Plan

By 2020, Unilever will help more than a

By 2020 Unilever will help

Unilever will continually

The Unilever Sustainable Living Plan

By 2020, Unilevers goal is to halve the

CorporateRegister.com Limited 30-04-14

Hindustan Unilever Limited

By 2020 Unilever will

By 2020 Unilever will

* per tonne of production in 2012 over 2008 baseline.

Business Responsiblity Report 2012-13

The Unilever Sustainable

CorporateRegister.com Limited 30-04-14

ABOUT THE REPORT

companies on the Environmental, Social

This Report provides general information

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

Corporate Identity Number (CIN) of the Company

List three key products that the Company

Total number of locations where business activity is

Markets served by the Company

SECTION B: FINANCIAL DETAILS OF THE COMPANY

Paid up Capital (INR)

Total Turnover (INR)

Total profit after taxes (INR)

Total Spending on Corporate Social Responsibility

List of activities in which expenditure in 4 above has

Introduction to Business Responsibility Report

CorporateRegister.com Limited 30-04-14

Hindustan Unilever Limited

SECTION C: OTHER DETAILS

Does the Company have any Subsidiary Company /

As on 31st March, 2013, the Company has eleven Subsidiary

The Code of Business Principles and Business Partner Code are

SECTION D: BUSINESS RESPONSIBILITY (BR) INFORMATION

Details of Director / Directors responsible for BR

Principle-wise (as per NVGs) BR Policy / Policies (Reply in Y/N)

Business Responsiblity Report 2012-13

Introduction to Business Responsibility Report

CorporateRegister.com Limited 30-04-14

Principle 6: Environment [P6]

Principle 2: Products Lifecycle Sustainability [P2]

Principle 7: Policy Advocacy [P7]

Principle 3: Employees Well-being [P3]

Principle 8: Inclusive Growth [P8]

Principle 4: Stakeholder Engagement [P4]

Principle 9: Customer Value [P9]

Principle 5: Human Rights [P5]

Do you have policy/policies for

Global People Survey (GPS): The